THE UNITE GROUP PLC Annual Report and Accounts 2024 54 STRATEGIC REPORT STRATEGIC REPORT RISK MANAGEMENT continued Integrated risk management approach STRATEGIC OPERATIONAL Internal audit Assure risk management effectiveness and internal control testing Executive Committee, Customer and Property Leadership teams Identify principal risks, including emerging risks Deliver actions in line with risk appetite Monitor risk indicators Consider completeness and adequacy of risk identification and mitigation actions, and risk exposure aggregation Business units Execute actions Report on risk indicators Report current and emerging risks Identify, evaluate and mitigate operational risks Board, Audit & Risk, Sustainability and Health & Safety Committees Review external environment Assess risks (including emerging risks) Set risk appetite and determine actions Assess risk management and internal control systems Report on risks and uncertainties FRAUD RISK We consider the risk to asset misappropriation, fraudulent statements and corruption, alongside the Failure to Prevent Fraud Act (effective 1 September 2025). The Group’s internal controls and risk management processes work in tandem to minimise the likelihood of fraud within the business. The controls in place are designed to minimise the opportunity, motivation and rationalisation for individuals to find opportunities to commit fraud. Our IT and financial systems are designed with segregation of duties to ensure individuals cannot override management controls of end-to-end processes. Internal audit undertakes independent audits across both operational and financial aspects of the business to independently verify that controls are operational and would report any instances of fraud. A CORPORATE CULTURE FOR RISK MANAGEMENT The Group’s risk management framework identifies principal and emerging risks, ensures that they are appropriately monitored, controls are in place and required actions have clear ownership. Identified emerging risks are monitored by the velocity of change in risk score. The organisation has an open and accountable culture, with an experienced leadership team. This culture accepts that risk is inherent in business and encourages an open and proactive approach to risk management. By viewing our risks through the lens of our strategic objectives, the Group ensures a proactive and preemptive approach, rather than tick box one. RISK MANAGEMENT FRAMEWORK The Board has the overall responsibility for the governance of risks and ensures there are adequate and effective systems in place.